STMicroelectronics announced a €1 billion credit line from the European Investment Bank (EIB), with a €500 million first tranche, to fund its investment program in Italy and France. The facility is designed to support the company’s expansion of silicon‑carbide (SiC) and silicon fabs in Catania, Agrate, and Crolles, as well as to accelerate research and development in MEMS, SiC, and edge‑AI technologies.
The allocation of the credit line reflects a 60/40 split: roughly €600 million will be used to expand the SiC and silicon fabs, while the remaining €400 million will be directed toward R&D initiatives. This strategy aligns with STMicroelectronics’ goal of strengthening its position in the growing automotive and industrial semiconductor markets, where demand for high‑power, high‑frequency devices is accelerating due to the electric‑vehicle boom and industrial automation trends.
Financially, the company’s Q3 2025 results showed a slight decline in net revenues and a net loss in Q2 2025, with a gross margin of 33.2% that fell year‑over‑year. The new credit line is expected to reduce debt‑related costs and provide the liquidity needed to execute the capital‑expenditure plan for 2026‑2027, which includes a voluntary workforce reduction and increased automation to achieve high‑triple‑digit‑million‑dollar annual cost savings by 2027.
The targeted €300‑€360 million in annual cost savings will come from the manufacturing reshaping program, which includes scaling up wafer production, improving process efficiencies, and integrating AI‑driven quality control. By expanding capacity in SiC and silicon fabs, STMicroelectronics can achieve economies of scale that lower per‑unit costs and improve margin resilience in a competitive market.
The EIB’s financing is part of its ninth operation to support European semiconductor manufacturing, reflecting the region’s push for technological sovereignty. The credit line also positions STMicroelectronics to capitalize on the rising demand for electric‑vehicle power electronics and edge‑AI solutions, which are expected to grow significantly in the coming years.
Jean‑Marc Chery, President and CEO, said the loan “strengthens Europe’s semiconductor ecosystem and underpins our commitment to high‑volume manufacturing and advanced R&D.” He added that the company’s manufacturing reshaping program will “future‑proof our Integrated Device Manufacturer model with strategic assets in Europe and improve our ability to innovate faster.”
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